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General Questions
Q: What is Trade Adjustment Assistance for Firms?
A: Established by Congress in 1974, Trade Adjustment Assistance for Firms(TAA)
is a program sponsored by the U.S. Department of Commerce put in place to help
American manufacturers who have been hurt by foreign competition. A group of
eleven non-profit TAA centers throughout the U.S. work with eligible firms in
management, marketing, manufacturing, engineering, finance, and many other
areas.
Q: Is this the same program as Trade Adjustment
Assistance for Workers?
A: No. But, for more information on that program, see the U.S. Department of
Labor web site at:
www.doleta.gov/programs/factsht/taa.cfm or call 202-693-3560.
Q: What can Trade Adjustment Assistance do for my firm?
A: Firms receiving Trade Adjustment Assistance have experienced the following
benefits: improved business performance, monetary assistance for certain
projects, objective analysis of their firm as well as the competition, and
ongoing support to improve business and profits.
Q: How can I find out if I am eligible?
A: U.S. manufacturers who have experienced a decline in sales and a decline, or
impending decline, in employment or worker hours may be eligible for Trade
Adjustment Assistance. For the most accurate and up to date information on
whether or not your firm qualifies for TAA program funding, please
contact us or call 607-771-0875 or 212-921-1662.
Q: How do I get started?
A:
Contact us or call us today at 607-771-0875 or 212-921-1662.
Cost to the Firm
Q: Do you charge my firm for
completing the Certification Application?
A: No! The Certification Application is completed by the NYS TAAC free of
charge.
Q: How much is this really going to
cost my firm?
A: Trade Adjustment Assistance is provided on a cost share basis. All
costs to the firm are discussed fully during the Certification phase, which is
provided free of charge.
Q: How much funding is available?
A: The actual amount of funding to be requested is established by the firm and
the NYS TAAC as part of developing an Adjustment Proposal for the firm. The
requested amount may be less than the maximum amount of funding available. There
are two
options for funding, a 50/50 percent cost share option and a 25/75 percent
cost share option.
50/50 Percent Cost Share Option - There is a maximum of
$150,000 of total project funding under this option on a 50/50 percent
(client/government) cost share
basis. This means a maximum of $150,000 of projects could be funded with
the firm paying 50 percent of the costs and the government paying 50 percent of
the costs.
25/75 Percent Cost Share Option - There is a maximum of $30,000 of total
project funding under this option on a 25/75 percent (client/government) cost
share basis. This means that a maximum of $30,000 of projects could be funded
with the firm paying 25 percent of the costs and the government paying 75
percent of the costs.
Q: Do you charge my firm for completing the Adjustment
Proposal?
A: There is a small fee for development of the Adjustment Proposal. This
fee is paid on a 25/75 percent cost share basis with the firm paying 25 percent
and the Federal government paying 75 percent of the cost. The actual cost for
development of the Adjustment Proposal varies and is dependent on the scope of
the project.
Q: When do I have access to funding?
A: Typically, eligibility certification takes from two to three months to
complete. Once certification is received, an Adjustment Proposal can take two to
four months from preparation to approval depending on the complexity of the firm
and the availability of needed information.
Use of Funds
Q: Can I use the funding for anything I want?
Answer: No. Specific projects are outlined in the Adjustment Proposal written by
a project manager who works directly with the principal contact at the firm
(designated by the firm). Funds can only be used to pay for outside industry
experts to consult on a wide variety of projects. Funds cannot be used to
purchase capital equipment or to subsidize employee salaries.
Q: Can I use the funds for more than one project?
A: Yes. Projects are specified in the Adjustment Proposal and are implemented
based on agreement of both the firm and the NYS TAAC.
Q: Do I have to complete all designated projects?
A: No. Designated projects should be completed at any time within two years from
the start of the implementation phase. However, projects are only started and
completed based on the cash flow of the firm and the firm’s comfort in moving
forward.
Q: Can I use the funding for employee training?
A: Yes. Funds can be used for on-site or off-site employee training. However,
funds cannot be used to subsidize any salaries.
Q: Can I use the funding for ISO certification? How
much will you pay?
Answer: Yes. Funds can be used for ISO certification on a cost share basis. We
will pay for training, document preparation, and the pre-assessment audit.
Q: Can I buy equipment?
A: No. Capital equipment cannot be bought with TAA program funding.
Q: Can I develop molds and tooling?
A: Yes. New molds and tools can be developed and used in the design stage.
However, funds cannot be used for the actual end products.
Q: Can I buy software to improve our efficiency?
A: Funds cannot be used to buy new software systems in full. However, funds can
be used to test programs and adapt existing software to fit the needs of your
firm.
Q: Can I use the funding to attend trade shows?
A: Funds can be used to develop new trade show displays but not to attend a
trade show.
Implementation
Q: Can our firm use the money to implement projects on
our own?
A: Funds are not paid directly to the firm. Once an outside consultant is hired,
the consultant is paid by both the firm and by the NYS TAAC.
Q: Who picks the consultants and what happens if we
don’t like them?
A: An RFP (Request for Proposal) is prepared for each project by the NYS TAAC
and sent to qualified consultants. The list of consultants can come from the
firm and from the NYS TAAC. The NYS TAAC and the firm’s principal representative
review the applications and choose a consultant. A contract is signed and any
party may terminate with written notice throughout the duration of the
relationship.
Q: How do consultants get paid?
A: For 50/50 percent cost share projects, consultants bill 50% to the firm and
50% to the NYS TAAC. For 25/75 percent cost share projects, consultants bill 25%
to the firm and 75% to the NYS TAAC. The consultant is paid by the NYS TAAC only
once the NYS TAAC has received notification that the consultant has been paid by
the firm.
Information Sharing
Q: Will my competitors find out about my financial
information or trade secrets?
A: No. The NYS TAAC and the central TAA office are prohibited from releasing any
information to outside sources.
Q: Will financial or other information be shared with
the IRS or other Government Agencies?
A: None of the information you provide is disclosed to any other federal, state,
or local agency. All proprietary and financial information is exempt from the
Freedom of Information Act. When a firm is certified, the law requires that the
firm’s name be published in the Federal Register. It is the only information
that is released to the public without your consent.
Q: How much detail will I be required to report and for
how long?
A: The Cost Share Agreement you sign requires your firm to provide follow up
information to the NYS TAAC for three years. A form will be provided to you to
complete and sign. Only three items will need to be reported: (1) the current
revenues, (2) the current employment level, and (3) the total profits for the
current year. This information helps to track the success of the program and
will again not be shared with any outside party.
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